WASHINGTON, Oct 12 () – Microsoft Corporation received Notices of Proposed Adjustment (NOPAs) from the Internal Revenue Service (IRS), seeking US$28.9 billion-plus penalties and interest for tax years 2004 to 2013, reported Sputnik.
“On October 11, 2023, Microsoft Corporation announced the receipt of Notices of Proposed Adjustment (“NOPAs”) from the Internal Revenue Service (the “IRS”) for the tax years 2004 to 2013. The NOPAs were received on September 26, 2023. The primary issues in the NOPAs relate to intercompany transfer pricing. In the NOPAs, the IRS is seeking an additional tax payment of US$28.9 billion-plus penalties and interest,” Microsoft Corporation said in a Securities and Exchange Commission filing on Wednesday.
Microsoft said that the allowances for income tax contingencies were adequate as of September 30, 2023. Additionally, the corporation expressed disagreement with the proposed adjustments and affirmed its intention to vigorously contest the NOPAs through the IRS’s administrative appeals office, and if necessary, through judicial proceedings, according to the file.
“We do not expect a final resolution of these issues in the next 12 months. Based on the information currently available, we do not anticipate a significant increase or decrease to our tax contingencies for these issues within the next 12 months,” the filing said.
Microsoft will continue to work with the IRS to reach a mutual resolution and provide updates on developments through public quarterly and annual reports, and financial statements, the filing stated.
— Bernama-Sputnik
